Business, 03.01.2020 20:31 hunterkerlin20p3l6ff

Red raider company uses a plantwide overhead rate with direct labor hours as the allocation base. next year, 400,000 units are expected to be produced taking .90 direct-labor hours each. how much overhead will be assigned to each unit produced given the following estimated amounts?

estimated: department 1 department 2
manufacturing overhead costs $2,530,000 $900,000
direct labor hours 168,000 dlh 110,000 dlh
machine hours 30,000 mh 8,000 mh

a. $12.34 per unit
b. $63.95 per unit
c. $7.32 per unit
d. $11.11 per unit
e. $15.06 per unit

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